Over recent years there has been a growing interest in the possible application of tokens. Generally, this has been limited to the raising of capital in the form of Initial Coin Offerings (ICOs) on the basis of the ideas of a whitepaper. Conversely, Nexus is building different token functionality to power applications with utility that extends beyond a store of value. Our technology is essential to creating many diverse and vibrant, interconnected networks to form the Nexus ecosystem.
Non-Fungible Tokens (NFT)
Nexus ‘Non fungible tokens’ are designed whereby each token represents total ownership of a physical or digital asset. The digital certificate that represents the physical or digital asset is represented by metadata that underlies the token.
Nexus ‘fungible tokens’ hold identical information and are interchangeable, and can either represent a store of value such as a native token, or enforce partial ownership or a ‘right’ to an underlying digital or physical asset. Any digital or physical asset can be licensed by attributing ownership of the underlying asset through token issuance. ‘Proof of rights’ to this license, are thus determined by the total number of tokens a certain user has. These rights can represent shares of a company, asset, or copyright, and therefore can facilitate the automatic dispersal of revenue streams for payments such as royalties and dividends, for example. Token distribution allows the network to enforce the automatic splitting of license payments, providing users free exchange of their rights to subsequent revenue streams.
In the above diagram, we show how the flow of a split payment functions, assuming that the asset has been created by the owner, and the tokens (TKNs) have been created and distributed to the token accounts. In this example, the split is 50-25-25. First, a user pays a license fee (here it is 1000NXS) for use of an asset represented by meta-data. The asset is then detected to be owned by the token account holders. The token holders are notified to claim their percentage of the payment (DEBIT), which is represented by their total token balance divided by the total token supply. Each token holder is then able to CREDIT their accounts proving their right to this payment with their TKN balance.
Thus, fungible tokens issued on Nexus are far more than a store of value; they have the ability to represent a right to a revenue stream of an underlying asset represented by a NFT. This empowers many people and organisations including: viz. artists, musicians, inventors, scientists, enterprises, agricultural producers, schools, charities and gamers.
Under development is the Nexus Decentralized Exchange (DEX), which will allow the buying and selling of any registered asset represented by a NFT through its certificate of authenticity in exchange for any token. All Fungible and Non-Fungible tokens will be tradable between buyers and sellers, without a third party, custodian, or any ‘permissions’. Therefore, the entire network itself is a native DEX to items that exist on the Nexus blockchain. No matter what the value of the item being traded, the orders will be fulfilled as soon as receiving enough confirmations.
Currently in Beta, the Nexus interface is capable of running third party modules which extend the standard logical and interface layers provided through the wallet. We believe it is important to allow the customization of the interface, to allow developers to build modules that support other coins, exchange trading dashboards, or custom Tritium applications such as online games.
“If an asset or token has to be listed by anyone other than the owner of the asset or token, it’s not a decentralized exchange“
The Nexus Ecosystem
Permissionless ‘Sister’ networks and permissioned ‘Hybrid’ networks can be ran, so that services/applications do not need to develop their own blockchains, but can rather leverage the modular Nexus Software Stack. The two types of networks will be able to choose their own consensus rules, and the Nexus blockchain will record intermittent block hashes from them as proofs of immutability. Hybrid networks will have similar properties as sister networks, although they will be less open and designed for managing private services. Both types of networks will use PoS (Proof of Stake) based consensus with their own native tokens. We expect that the growth of services and applications, as part of the Nexus ecosystem, will begin to flourish in the following sectors:
Arts, Music & Science – Patents, Trademarks, Licences, Copyrights, Royalty payments
Education – Certificates, Badges, and Scholarship Credits
Supply chains – Shipping, Logistics
Fund/Capital Raising – Securitised Token Offerings (STOs)
Voting – Token Voting Structures for organisations and companies
Nexus has adopted the Internet Engineering Task Force’s (IETF) time-tested open process through ‘Working Groups’. Our Working Group model connects a decentralized collection of people who work together to set standards or develop new components of our technology.
Coders-wg: Develop code and set higher level standards for the Nexus Architecture
Use cases-wg: Discuss functionality for different sectors
Communications-wg: Write content for the website, WIKI, and social media
Website-wg: Develop the standards and design of the official Nexus Website
Graphics-wg: Develop graphics to support the Nexus Brand
Social-wg: Discuss and design Decentralized Voting Structures
Translations-wg: Translate content for the website
If you are interested in joining any of the working groups please email [email protected]. We welcome the community to set up additional working groups not listed above if you feel it would contribute to the standards and development process.